Earnings Beat: Aeroports de Paris SA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Aeroports de Paris SA (EPA:ADP) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of €2.9b, some 2.9% above estimates, and statutory earnings per share (EPS) coming in at €3.52, 61% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Aeroports de Paris

After the latest results, the 16 analysts covering Aeroports de Paris are now predicting revenues of €5.99b in 2024. If met, this would reflect a reasonable 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dive 31% to €5.38 in the same period. Before this earnings report, the analysts had been forecasting revenues of €5.97b and earnings per share (EPS) of €5.35 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of €134, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Aeroports de Paris, with the most bullish analyst valuing it at €157 and the most bearish at €115 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Aeroports de Paris' revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2024 being well below the historical 10% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.3% annually. So it's pretty clear that, while Aeroports de Paris' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €134, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Aeroports de Paris analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Aeroports de Paris has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com